88R7089 SRA-F
 
  By: Parker S.B. No. 1541
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the charging of swipe fees on certain electronic
  payment transactions; authorizing a civil penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 12, Business & Commerce Code, is amended by
  adding Chapter 610 to read as follows:
  CHAPTER 610. CHARGING OF SWIPE FEES
         Sec. 610.001.  DEFINITIONS. In this chapter: 
               (1)  "Assessment fee" means a fee, usually based on the
  total amount of monthly sales, paid directly to the payment card
  network for allowing a merchant to use a payment card or other
  payment code or device in an electronic payment transaction.
               (2)  "Electronic payment transaction" means a
  transaction in which a person uses a payment card or other payment
  code or device issued or approved through a payment card network to
  debit a deposit account or use a line of credit, whether
  authorization is based on a signature, personal identification
  number, or other means.
               (3)  "Interchange fee" means a fee charged to a
  merchant for the purpose of compensating the payment card issuer
  for the issuer's involvement in an electronic payment transaction.
               (4)  "Payment card" means a credit card, debit card,
  check card, or other card that is issued to an authorized user to
  purchase or obtain goods, services, money, or any other thing of
  value.
               (5)  "Payment card issuer" means a lender, including a
  financial institution, or a merchant that receives applications and
  issues payment cards to individuals.
               (6)  "Payment card network" means an entity that
  directly, or through a licensed member, processor, or agent,
  provides the proprietary services, infrastructure, and software
  that route information and data to conduct debit card or credit card
  transaction authorization, clearance, and settlement, and that an
  entity uses in order to accept as a form of payment a brand of debit
  card, credit card, or other device that may be used to carry out
  debit or credit transactions.
               (7)  "State or local tax" includes a tax imposed by this
  state or a unit of local government of this state, including the
  sales, excise, and use tax, motor fuels tax, hotel occupancy tax,
  and the tax imposed on the rental of a motor vehicle, other than a
  tax returned to a taxpayer in the form of a deduction or discount
  under Section 151.423 or 151.424, Tax Code.
               (8)  "Swipe fee" means the interchange fee and, if
  applicable, the assessment fee.
         Sec. 610.002.  EXCLUSION OF STATE OR LOCAL TAXES FROM SWIPE
  FEES; MERCHANT DEDUCTION OR REBATE.  (a)  The amount of state or
  local tax that is calculated as a percentage of the amount of an
  electronic payment transaction made in this state and listed
  separately on a payment invoice or other demand for payment must be
  excluded from the total amount on which a swipe fee is charged for
  that transaction.
         (b)  A payment card network shall with respect to each form
  or type of electronic payment transaction:
               (1)  deduct the amount of state or local tax imposed
  from the calculation of swipe fees attributable to the transaction
  at the time of settlement; or
               (2)  rebate the merchant an amount equal to the amount
  of swipe fees attributable to the state or local tax imposed on the
  transaction.
         (c)  A deduction or rebate under this section must occur at
  the time of settlement when the merchant is able to capture and
  transmit state or local tax or fee amounts relevant to the sale at
  the time of sale as part of the transaction finalization.  If a
  merchant is unable to capture and transmit tax or fee amounts
  relevant to the sale at the time of sale, then the payment card
  network must accept proof of tax or fee amounts collected on sales
  subject to a swipe fee on the submission of sales data by the
  merchant.
         Sec. 610.003.  CIVIL PENALTY; RESTITUTION.  (a)  A person who
  violates this chapter is liable to this state for a civil penalty in
  an amount not to exceed $1,000 for each violation.
         (b)  The attorney general may bring an action to:
               (1)  recover the civil penalty imposed under this
  section; or
               (2)  obtain a temporary or permanent injunction to
  restrain the violation.
         (c)  An action under this section may be brought in a
  district court in:
               (1)  Travis County; or
               (2)  a county in which any part of the violation occurs.
         (d)  The attorney general shall deposit a civil penalty
  collected under this section in the state treasury to the credit of
  the general revenue fund.
         (e)  A person who violates this chapter shall refund a
  merchant any swipe fees charged in violation of this chapter.
         SECTION 2.  This Act takes effect September 1, 2023.